It is imperative that China continues to reduce financial repression, as it is the root cause for the circumventive financing activities.
The central bank has also started to purge trading irregularities in the interbank bond market, which is part of the circumventive financing activity involving nonbank financial institutions, corporations, and individuals.
(71) Money, like water, will flow around the rent-control price ceiling, and government regulation will be less effective, but not totally ineffective, due to tenants' and landlords' circumventive activities.
(75) By imposing a penalty-backed price ceiling and reducing demand and/or expanding supply, the government can slow the flow of circumventive exchange from a surge to a trickle.
(83) Absent the threat of penalty, donors and candidates will engage in these circumventive transactions and the black-market level of exchange, despite the declared price ceiling, will loom near the free-market equilibrium.
(90) Money, like water, will flow around the donation price ceiling, and government regulation of the market will be less effective (but not ineffective) due to donors' and candidates' circumventive activities.
Such circumventive collaboration is consistent with suppliers' access-seeking and candidates' money-seeking motives that underlie the campaign-finance markets.